SHFL INTEGRATION-RELATED COST SYNERGIES EXPECTED TO BE AT LEAST $40
MILLION

Bally
Technologies, Inc. (NYSE: BYI) (“Bally” or the “Company”), a
leader in gaming machines, table-game products, casino-management
systems, interactive applications, and networked and server-based
systems for the global gaming industry, today announced record quarterly
revenue of $285 million and Adjusted EPS of $1.06 for the three months
ended December 31, 2013, inclusive of a $0.02 loss per share from
unfavorable foreign currency movements. Diluted earnings per share
(“GAAP Diluted EPS”) was $0.54 for the three months ended December 31,
2013. Second quarter fiscal 2014 results include 37 days of operations
from SHFL entertainment, Inc. (“SHFL”).

“Our second quarter fiscal 2014 was transformative in many respects,”
said Ramesh Srinivasan, the Company’s President and Chief Executive
Officer. “We successfully closed the acquisition of SHFL ahead of
schedule and the ongoing integration process is moving forward smoothly.
We have integrated our sales, services and product development teams
while simultaneously continuing to execute well on our core businesses
as evidenced in our second quarter results. Customer response across the
globe to the integration, including the combined product roadmaps, has
been positive. While more work remains to be done, we are off to a
terrific start and are tracking ahead of our synergy targets. We believe
that Bally is now well-positioned to continue industry-leading
innovation and growth.”

“Revenues that are recurring in nature set a quarterly record and
accounted for approximately 51 percent of total revenue during the
quarter,” said Neil Davidson, the Company’s Chief Financial Officer. “As
we make progress on the integration process and continue to identify
incremental synergy opportunities, we now expect cost synergies to be at
least $40 million on an annualized run-rate basis by the end of calendar
2014. Now that the acquisition has closed, we are thoughtfully
allocating free cash flow towards the repayment of our debt with a goal
of achieving a leverage ratio of approximately 3.0 times within the next
two years. In fact, we have already paid down $58 million of debt since
the acquisition closed.”

Second Quarter Fiscal Year 2014 Highlights

Three Months Ended December 31,

Six Months Ended December 31,

2013 (3)

%Rev

2012

%Rev

2013 (3)

%Rev

2012

%Rev

(dollars in millions, except per share amounts)

Revenues:

Electronic Gaming Machines (“EGM”)

$

88.1

31

%

$

82.6

35

%

$

159.4

30

%

$

165.3

35

%

Gaming Operations

97.3

34

%

99.0

41

%

199.2

37

%

200.2

42

%

Systems

85.5

30

%

56.7

24

%

161.6

30

%

108.0

23

%

Table Products

14.3

5

%

—

—

14.3

3

%

—

—

Total revenues

$

285.2

100

%

$

238.3

100

%

$

534.5

100

%

$

473.5

100

%

Gross Margin: (1)

EGM

$

42.1

48

%

$

43.9

53

%

$

78.1

49

%

$

83.1

50

%

Gaming Operations

67.8

70

%

69.7

70

%

139.1

70

%

139.8

70

%

Systems

61.3

72

%

43.2

76

%

118.2

73

%

82.7

76

%

Table Products

8.7

61

%

—

—

8.7

61

%

—

—

Total gross margin

$

179.9

63

%

$

156.8

66

%

$

344.1

64

%

$

305.6

65

%

Selling, general and administrative

$

91.0

32

%

$

67.9

28

%

$

163.4

31

%

$

132.4

28

%

Research and development costs

32.7

11

%

26.6

11

%

62.2

12

%

51.7

11

%

Depreciation and amortization

11.7

4

%

5.7

3

%

17.0

3

%

11.3

3

%

Operating income

$

44.5

16

%

$

56.6

24

%

$

101.5

19

%

$

110.2

23

%

GAAP Diluted EPS

$

0.54

$

0.80

$

1.51

$

1.57

Non-GAAP Measures: (2)

Adjusted Operating Income

$

75.9

27

%

$

56.6

24

%

$

138.1

26

%

$

110.2

23

%

Adjusted EBITDA

$

102.2

36

%

$

81.1

34

%

$

188.9

35

%

$

159.9

34

%

Adjusted EPS

$

1.06

$

0.80

$

2.02

$

1.57

(1)

Gross Margin excludes amortization related to intangible assets
which are included in depreciation and amortization.

(2)

Adjusted Operating Income, Adjusted EBITDA (earnings before
interest, taxes, depreciation and amortization, including
share-based compensation and acquisition-related costs) and Adjusted
EPS are Non-GAAP financial measures. A reconciliation between GAAP
and Non-GAAP measures can be found at the end of this press release.

(3)

Results for the three and six months ended December 31, 2013 include
37 days of operations from SHFL.

Three Months EndedDecember 31,

Six Months EndedDecember 31,

2013

2012

2013

2012

Operating Statistics

Units Sold

Average Selling Price (“ASP”)

Units Sold

ASP

Units Sold

ASP

Units Sold

ASP

New EGM (1)

5,152

$

15,936

4,565

$

16,553

9,147

$

16,098

9,173

$

16,704

Utility

138

$

16,958

NA

NA

138

$

16,958

NA

NA

Proprietary Table Games (“PTG”)

—

NA

NA

NA

—

NA

NA

NA

(1)

Includes 90 Electronic Table System (“ETS”) seats sold during the
three and six months ended December 31, 2013.

As of December 31,

2013

2012

End-of-period installed base:

Linked progressive systems

2,538

2,230

Rental and daily-fee games

16,844

14,692

Lottery systems (1)

12,707

12,222

Centrally determined systems

30,763

37,120

Utility

8,833

NA

PTG

3,011

NA

Table game progressive units, table side bets and add-ons

5,199

NA

(1)

Excludes 646 and 620 third-party ETS seats operating as of December
31, 2013 and 2012, respectively.

Highlights of Certain Results for the Three Months Ended December 31,
2013

Overall

Total revenue increased 20 percent to a quarterly record $285 million
as compared with $238 million last year.

Adjusted EBITDA increased 26 percent to a quarterly record $102
million as compared with $81 million last year.

Selling, general and administrative expenses (“SG&A”) increased to 32
percent of total revenues from 28 percent last year, primarily driven
by $22 million of one-time costs associated with the acquisition of
SHFL. After adjusting for these one-time costs, SG&A was 24 percent of
total revenues in the current period down from 28 percent last year.

Research and development expenses (“R&D”) remained constant at 11
percent of total revenue.

Operating income decreased 21 percent to $45 million as compared with
$57 million last year. Adjusted Operating Income increased by 34
percent to a record $76 million. Adjusted operating margin increased
to a record 27 percent from 24 percent last year.

GAAP Diluted EPS was $0.54 as compared with $0.80 last year. Adjusted
EPS increased 35 percent to a quarterly record $1.06 from $0.80 last
year.

Electronic Gaming Machines

Revenues increased 7 percent to $88 million as compared with $83
million last year, driven by the shipment of 1,025 units into the
Illinois Video Gaming Terminal (“VGT”) market, 587 Equinox units and
90 ETS seats partially offset by the absence of 568 Canadian VLT units
sold in the prior year period.

ASP of new electronic gaming devices decreased 4 percent to $15,936
per unit from $16,553 last year, primarily as a result of mix and
lower ASPs in certain international jurisdictions.

New unit sales to international customers were 29 percent of total new
unit shipments.

Gross margin decreased to 48 percent from 53 percent last year,
primarily driven by $3 million of inventory related charges that are
included in acquisition-related costs. After adjusting for these
costs, gross margin was 51 percent. Gross margin in the second quarter
of fiscal 2013 benefitted from the exercise of a lease buyout.

Gaming Operations

Revenues decreased 2 percent to $97 million as compared with $99
million last year, driven by lower yields on certain variable fee
games, offset by a 9 percent increase in the installed base of WAP
games, stronger yields in lottery systems and the inclusion of 2,985
leased SHFL ETS seats and EGMs.

Gross margin remained constant at 70 percent.

Systems

Revenues increased 51 percent to an all-time record $85 million as
compared with $57 million last year.

Maintenance revenues increased 6 percent to $25 million as compared
with $23 million last year.

Gross margin decreased to 72 percent from 76 percent last year,
primarily as a result of the change in mix of products. Specifically,
hardware sales were 38 percent of systems revenues, and software and
service sales were 33 percent, as compared to 27 percent for hardware
sales and 32 percent for software and services sales in the same
period last year.

Table Products

Revenues were $14 million, with Utility revenue of $9 million and PTG
revenue of $6 million.

Gross margin was 61 percent. Gross margin was impacted by $1 million
of inventory related charges that are included in acquisition-related
costs. After adjusting for these costs gross margin was 71 percent.

Highlights of Certain Results for the Six Months Ended December 31,
2013

Overall

Total revenue increased 13 percent to a record $535 million as
compared with $473 million last year.

Adjusted EBITDA increased 18 percent to a record $189 million as
compared with $160 million last year.

SG&A increased to 31 percent of total revenues from 28 percent last
year, primarily driven by $27 million of one-time costs associated
with the acquisition of SHFL. After adjusting for these one-time
costs, SG&A was 26 percent of total revenues in the current period
down from 28 percent last year.

R&D increased to 12 percent of total revenues from 11 percent last
year.

Operating income decreased 8 percent to $102 million as compared with
$110 million last year. Adjusted Operating Income increased 25 percent
to a record $138 million. Adjusted operating margin increased to 26
percent from 23 percent last year.

GAAP Diluted EPS was $1.51 as compared with $1.57 last year. Adjusted
EPS increased 31 percent to a record $2.02 from $1.57 last year.

Electronic Gaming Machines

Revenues decreased 4 percent to $159 million as compared with $165
million last year, driven by the shipment of 1,481 units into the
Illinois VGT market, 587 Equinox units and 90 ETS seats offset by the
absence of 1,238 Canadian VLT units sold in the prior year period.

ASP of new gaming devices decreased 4 percent to $16,098 per unit from
$16,704 last year, primarily as a result of mix and lower ASPs in
certain international jurisdictions.

New unit sales to international customers were 25 percent of total new
unit shipments.

Gross margin decreased to 49 percent from 50 percent last year,
primarily driven by $3 million of inventory charges that are included
in acquisition-related costs. After adjusting for these costs, gross
margin was 51 percent.

Gaming Operations

Revenues decreased slightly to $199 million as compared with $200
million last year, driven by lower yields on certain variable fee
games, offset by a 9 percent increase in the installed base of WAP
games, stronger yields in lottery systems and the inclusion of 2,985
leased SHFL ETS seats and EGMs.

Gross margin remained constant at 70 percent.

Systems

Revenues increased 50 percent to a record $162 million as compared
with $108 million last year.

Maintenance revenues increased 13 percent to a record $50 million as
compared with $44 million last year.

Gross margin decreased to 73 percent from 76 percent last year,
primarily as a result of the change in mix of products. Specifically,
hardware sales were 35 percent of systems revenues, and software and
service sales were 34 percent, as compared to 26 percent for hardware
sales and 33 percent for software and services sales in the same
period last year.

Table Products

Revenues were $14 million, with Utility revenue of $9 million and PTG
revenue of $6 million.

Gross margin was 61 percent. Gross margin was impacted by $1 million
of inventory charges that are included in acquisition-related costs.
After adjusting for these costs gross margin was 71 percent.

Fiscal 2014 Business Update

As a result of completing the SHFL acquisition on November 25, 2013, the
Company initiated full-year fiscal 2014 guidance for Adjusted EPS with a
range of $4.30 to $4.50. Adjusted EPS will be calculated in accordance
with the table included in this press release. The range also excludes
current and expected losses from unfavorable foreign currency movements.
For clarity, this guidance includes $2.05 per share of results for the
six months ended December 31, 2013 which is comprised of Adjusted EPS of
$2.02 plus an add-back of $0.03 per share loss from unfavorable foreign
currency movements incurred during the first six months of fiscal 2014.
This results in a range of Adjusted EPS expected for the remaining six
months of fiscal 2014 of $2.25 to $2.45.

The Company expects amortization resulting from purchased intangibles to
approximate $0.22 per share per quarter in the remainder of fiscal 2014
and expects interest expense to approximate $0.35 per share per quarter,
of which $0.28 per share is incremental as a result of the SHFL
acquisition.

The Company also increased its estimate for SHFL integration-related
cost synergies to be realized on an annualized run-rate basis by the end
of calendar 2014 from at least $30 million to at least $40 million per
year.

The Company has provided this range of earnings guidance for fiscal 2014
to give investors general information on the overall direction of its
business at this time. The guidance provided is subject to numerous
uncertainties, including, among others, overall economic and capital
market conditions, the market for gaming devices and systems, changes in
gaming legislation, the timing of new jurisdictions and casino openings,
the timing and completion of new systems installations, competitive
product introductions, complex revenue recognition rules related to the
Company’s business, and assumptions about the Company’s new product
introductions and regulatory approvals. The Company does not intend and
undertakes no obligation to update its forward-looking statements,
including forecasts, potential opportunities for growth in new and
existing markets, and future prospects for proposed new products.
Accordingly, the Company does not intend to update guidance during the
quarter. Additional information about the factors that could potentially
affect the Company’s financial results included in today’s press release
can be found in the Company’s Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q filed with the U.S. Securities and Exchange
Commission.

Non-GAAP Financial Measures

The following table reconciles the Company’s net income attributable to
Bally Technologies, Inc., as determined in accordance with generally
accepted accounting principles (“GAAP”), to Adjusted EBITDA:

Three Months Ended

Six Months Ended

December 31,

December 31,

2013

2012

2013

2012

(in millions)

Net income attributable to Bally Technologies, Inc.

$

21.2

$

33.1

$

59.0

$

65.6

Interest expense, net

9.3

3.2

11.3

6.6

Income tax expense

12.1

19.4

28.3

37.8

Depreciation and amortization (“D&A”)

30.0

22.3

52.1

43.7

Share-based compensation

3.7

3.1

7.1

6.2

Acquisition-related costs

25.9

—

31.1

—

Adjusted EBITDA

$

102.2

$

81.1

$

188.9

$

159.9

Adjusted EBITDA is a supplemental non-GAAP financial measure used by the
Company’s management and by some industry analysts to evaluate the
Company’s ability to service debt, and is used by some investors and
financial analysts in the gaming industry in measuring and comparing
Bally’s leverage, liquidity and operating performance to other gaming
companies. Adjusted EBITDA should not be considered an alternative to
operating income or net cash from operations as determined in accordance
with GAAP. Not all companies calculate Adjusted EBITDA the same way, and
the Company’s presentation may be different from those presented by
other companies.

The following tables reconcile the Company’s GAAP to Non-GAAP Financial
Measures:

Three Months Ended December 31, 2013

Gross

SG&A

Operating

Net

Revenues

Margin (1)

Expenses

D&A

Income

Income (2)

EPS

GAAP Measures

$

285.2

$

179.9

$

91.0

$

11.7

$

44.5

$

21.2

$

0.54

GAAP %

63

%

32

%

16

%

Amortization of purchased intangibles

—

—

—

(5.5

)

5.5

3.6

0.09

Acquisition-related costs

—

4.2

(21.7

)

—

25.9

16.7

0.43

Total adjustments

—

4.2

(21.7

)

(5.5

)

31.4

20.3

0.52

Adjusted Non-GAAP Measures

$

285.2

$

184.1

$

69.3

$

6.2

$

75.9

$

41.5

$

1.06

Adjusted %

65

%

24

%

27

%

(1)

Gross Margin excludes amortization related to intangible assets
which are included in depreciation and amortization.

(2)

Adjustments tax effected at 35.5%.

Six Months Ended December 31, 2013

Gross

SG&A

Operating

Net

Revenues

Margin (1)

Expenses

D&A

Income

Income (2)

EPS

GAAP Measures

$

534.5

$

344.1

$

163.4

$

17.0

$

101.5

$

59.0

$

1.51

GAAP %

64

%

31

%

19

%

Amortization of purchased intangibles

—

—

—

(5.5

)

5.5

3.6

0.09

Acquisition-related costs

—

4.2

(26.9

)

—

31.1

20.0

0.51

IRS audit one-time benefit

—

—

—

—

—

(3.6

)

(0.09

)

Total adjustments

—

4.2

(26.9

)

(5.5

)

36.6

20.0

0.51

Adjusted Non-GAAP Measures

$

534.5

$

348.3

$

136.5

$

11.5

$

138.1

$

79.0

$

2.02

Adjusted %

65

%

26

%

26

%

(1)

Gross Margin excludes amortization related to intangible assets
which are included in depreciation and amortization.

(2)

Adjustments tax effected at 35.5%, except there is no tax effect on
the IRS audit one-time benefit.

Adjusted EPS and other such adjusted measures are supplemental non-GAAP
financial measures that the Company’s management believes more
accurately reflects the Company’s operating results for the periods
presented. Adjusted measures should not be considered an alternative to
GAAP measures as determined in accordance with GAAP.

Earnings Conference Call and Webcast

As previously announced, the Company is hosting a conference call and
webcast today at 4:30 p.m. EST (1:30 p.m. PST). The conference-call
dial-in number is 866-524-3160 or 412-317-6760 (International); passcode
“Bally”. The webcast can be accessed by visiting BallyTech.com
and selecting “Investor Relations.” Interested parties should initiate
the call and webcast process at least five minutes prior to the
beginning of the presentation. For those who miss this event, an
archived version will be available at BallyTech.com
until March 6, 2014.

This press release may contain “forward looking” statements within
the meaning of the Securities Act of 1933, as amended, and the
Securities Exchange Act of 1934, as amended, and is subject to the safe
harbors created thereby. Forward looking statements are subject to
change and involve risks and uncertainties that could significantly
affect future results, including those risks detailed from time to time
in the Company’s filings with the Securities and Exchange Commission.Although the Company believes any expectations expressed in any
forward looking statements are reasonable, future results may differ
materially from those expressed in any forward looking statements. The
Company undertakes no obligation to update the information in this press
release except as required by law and represents that the information
speaks only as of today’s date.